The NESsT Lirio Fund provides loans and technical assistance to social enterprises that offer sustainable employment opportunities to marginalized communities in Peru, Colombia, and Brazil.
Overview
The Fund aims to create 50,000 dignified jobs people from marginalized communities in Latin America over the next five years.
It offers competitive interest rates and terms that are more flexible than traditional sources of capital, allowing entrepreneurs to accelerate their growth in a sustainable manner.
The Fund intends to be invested over the next one to two years.
Entrepreneurs who receive loans from the Fund may also receive technical assistance from NESsT to develop their businesses, increase the capacities of internal teams, manage the loan, generate financial statements, and access more traditional capital markets in the medium and long term.
INVESTMENT EXAMPLE
Financing Conditions
INKA MOSS
Farmers use solar technology to grow moss, overcoming the challenges posed by climate and market prices for more traditional products.
The Fund provides loans with the following characteristics:
Investment size: Loans between $200,000 and $500,000.
Types of financing: Short, medium and long-term working capital; purchase order financing; capital expenditure financing (CAPEX); among other uses (analyzed on a case-by-case basis).
Term: From 6 months to 5 years.
Collateral: Decided on a case by case basis but often will include inventory, accounts receivable, fixed assets.
Business Criteria
The Fund shall target companies with the following characteristics:
Annual sales between USD $400,000 and USD $10,000,000.
Commercial assets that impact low-income communities in Peru and/or Colombia.
A competent management team: focus on an experienced management team with a track record of success in creating and/or managing companies, or having other experience in industry and relevant education. Team of at least 2 people with experience working together. With vision of growth.
Business stage: Start-ups with at least 3 years of operational experience, which have limitations in access to financing where the relevance of the Fund is evident. Companies that have the ability to produce basic financial statements to make informed business decisions.
Business Result: Historical sales show a positive trend and the business model shows growth potential. Profitable or demonstration that the company will be profitable within 6 months.
Commitment to social impact: dedicated to combating poverty and exclusion through market-based and scalable approaches; providing decent employment opportunities to disadvantaged communities including vulnerable women, people with disabilities, young people at risk, small producers and craftsmen, etc.
Environmental responsibility: companies that are environmentally and socially responsible and are interested in working with the Fund to improve in these areas when necessary.
Impact Criteria
The fund will target companies that:
Employ at least 80% of their workers in marginalized communities and/or
Train marginalized individuals and place them in jobs in high-growth industries and/or
Source the majority of their key supplies from marginalized communities.
Sectors:
The Fund provides loans in the following sectors:
Agriculture and livestock
Fishing
Food and beverages
Handicrafts
Impact technologies
Natural products (e.g. from biodiversity areas)
Retail and services (including tourism)
Textiles (ethical fashion)
Other sectors will be considered on a case-by-case basis
Frequently Asked Questions
How long does it usually take to get the loan?
The time to close the loan will depend on the speed and quality of the material provided by the management team. Generally, it is estimated that the approval process will take about 3-5 months from the initial filing of the application, depending on the information provided by the management teams.
How do I verify the social impact of my company?
NESsT is dedicated to supporting organizations that directly or indirectly create sustainable and dignified employment for marginalized communities through their supply chain. We would like to understand how your strategy would use our loan to create at least 50 jobs for marginalized communities in the next one to two years.
Should I apply if I have never accepted debt capital before?
Yes. NESsT focuses on helping social enterprises that struggle to access traditional sources of capital.
Should we apply if we don't have a CFO?
Yes. Even though it is important that borrowers of the Fund to maintain sound financial records and create a team focused on financial management, NESsT recognizes that many teams are still developing these skills. In circumstances where applicants do not have a CFO, NESsT will work with the management team to develop the financial management capacity internally shortly after the loan is closed.
What if my company’s annual sales are below $400,000?
NESsT has other acceleration programs geared towards smaller companies. Fill out this form to tell us about your social enterprise: nesst.org/tell-us-about-your-social-enterprise. If your enterprise looks like a good fit, we will invite you to complete a portfolio application.